Singapore Update: December 10, 2018

Next PM front-runner Heng Swee Keat appointed as first assistant secretary-general

On November 23, the People’s Action party, Singapore’s ruling party, appointed finance minister Heng Swee Keat as first assistant secretary-general setting him on course to be Singapore’s next leader. Mr. Heng prevailed over two other candidates, education minister Ong Ye Kung and trade and industry minister Chan Chun Sing, who has been named PAP’s second assistant secretary-general. Prior to his stint as Finance Minister, Mr. Heng held significant leadership positions and served as Minister of Education (2011 to 2015), Managing Director for the Monetary Authority of Singapore (2005 to 2011), Principal Private Secretary to the then Senior Minister Lee Kuan Yew (1997 to 2000). He also served in the Singapore Police Force. Mr. Heng could become Singapore’s new prime minister as soon as next year since Prime Minister Lee Hsien Loong, son of Singapore founding father Lee Kuan Yew, had earlier suggested that general elections could be held in 2019, more than a year before his term is set to end. Mr. Lee is expected to announce cabinet changes soon. Change in Singapore’s leadership comes at a time when the strategic balance in the region is shifting with the US-China trade war and when bilateral ties with Malaysia are being tested over water supply pricing and airspace and maritime boundary issues. Malaysia has filed two protests. One over Singapore's publication of the Instrument Landing System (ILS) and ILS Approach Procedures for Seletar Airport on Dec 1, citing the impact of the Seletar Airport flight path on developments and shipping operations in Pasir Gudang. Malaysia lodged another protest on outstanding Singapore-Malaysia maritime boundary delimitations, including the new Johore Bahru Port Limits.

Ministry of Trade and Industry (MTI) announced that Singapore’s economy grew by 2.2 percent in the third quarter, slowing from the second quarter’s 4.1 percent growth. Growth moderation across most sectors contributed to the slower growth pace. The economy’s performance in the third quarter was below MTI’s estimate of 2.6 percent and analysts who predicted 2.4 percent. The average of Singapore’s first three quarters is 3.6 percent, 0.1 percent above the 2.5 to 3.5 percent prediction by the Ministry. MTI expects that Singapore’s growth in the fourth quarter to moderate but remain firm supported by its robust service sectors. As a result, the Ministry has revised its 2018 growth forecast to 3.0 to 3.5 percent from 2.5 to 3.5 percent.

Looking ahead towards 2019, MTI predicts that Singapore’s economy will grow between 1.5 to 3.5 percent. MTI’s conservative prediction is due to the possibility of a decline in global investment and consumption spending because of the risk of further escalation of trade conflicts between the U.S. and its key trading partners. In addition, the Ministry also attributes the slowdown to a faster-than-expected tightening of global financial conditions that could lead to financial vulnerabilities in some of the region’s emerging economies. As a result, lower investment appetite and reduced consumption in those economies may cause spillover effects on other economies in the region. The Ministry expects slower growth in the manufacturing sector and the outward-oriented services sector due to external headwinds and growth moderation in advanced and regional economies.

Singapore consults on measures to reduce sugar intake

Singapore’s Ministry of Health (“MOH”) and the Health Promotion Board (“HPB”) seeks views on possible measures to reduce Singaporeans’ sugar intake from pre-packaged sugar-sweetened beverages (“SSBs”). Four possible measures include mandatory front-of-pack nutrition label, advertising regulations, excise duty on manufacturers and importers of pre-packaged SSBs, and a nationwide ban on the sale of higher sugar pre-packaged drinks. For more detailed information on the proposed measures, the Public Consultation Paper on Possible Measures for Pre-Packaged SSBs is available at https://www.reach.gov.sg/sugarydrinks. The consultation period is open from December 4, 2018 to January 25,2019. Part of Singapore’s war on diabetes, sugar reduction also reduces obesity, a risk factor for diabetes, heart attacks, stroke, and some cancers. Experts the Straits Times spoke to all agree that a ban would be the most effective in reducing sugar intake but would also be the least acceptable politically. However, their views differ on regulating sugar in general not just pre-packaged sugar-sweetened drinks. Professor Teo Yik Ying, dean of the Saw Swee Hock School of Public Health and Professor Eric Finkelstein of the Duke-NUS Medical School agree that packaged fruit juices, even those with no added sugar, should not be exempt. Prof Finkelstein added that sugar is sugar and the narrower the tax, the less effective it is because people could have other high-calorie drinks as substitutes. Ms Gladys Wong, a senior principal dietitian at the Khoo Teck Puat Hospital opines that there must be a fair way to tax the freshly prepared beverage outlets, not just the pre-packaged drinks.

ADVOCACY UPDATE

The Council seeks members’ views on Singapore’s Possible Measures for Pre-Packaged Sugar-Sweetened Beverages (SSBs). On December 4, Singapore’s Ministry of Health (“MOH”) and the Health Promotion Board (“HPB”) opened public consultation on four possible measures including mandatory front-of-pack nutrition label, advertising regulations, excise duty on manufacturers and importers of pre-packaged SSBs, and a nationwide ban on the sale of higher sugar pre-packaged drinks. A PDF of the Public Consultation Paper on Possible Measures for Pre-Packaged SSBs may be found https://www.reach.gov.sg/sugarydrinks. While measures are proposed to lower sugar intake and achieve public health objectives, they impact companies who deal with SSBs and may have implications for sugar in general. Should you wish your comments to be included in the Council’s submission, please email inputs to Ms. Sunita Kapoor at skapoor@usasean.org on or before January 9, 2019. Public feedback may be sent to sugary_drinks@hpb.gov.sg. Public consultation closes on January 25, 2019.

Singapore welcomes pause in US-China trade war, says DPM TeoThe Straits Times 6th Dec 2018
Singapore welcomes the pause in the trade war between the United States and China as the spat did not benefit anyone, Deputy Prime Minister Teo Chee Hean said in an interview with television news outlet France 24 on Wednesday (Dec 5).

Malaysia sends 2 protest notes to Singapore over airspace and maritime disputesChannel NewsAsia 6th Dec 2018
The Malaysian government said on Wednesday (Dec 5) that it has sent two protest notes to Singapore pertaining to the airspace and maritime boundary delimitation issues currently facing both countries. The notes were communicated through the Singapore High Commissioner to Malaysia, according to a press release from Malaysia's Ministry of Foreign Affairs. The first note pertains to Singapore's publication of the Instrument Landing System (ILS) and ILS Approach Procedures for Seletar Airport on Dec 1. The second protest note pertains to the outstanding maritime boundary delimitation between Malaysia and Singapore, including the new Johore Bahru Port Limits and the recent incidents in relation to it, the ministry said.

MUIS gets new chief, Esa Masood, from 2019Channel NewsAsia 6th Dec 2018
he Islamic Religious Council of Singapore (MUIS) will have a new senior management team from next year, with Mr Esa Masood replacing retiring chief executive Abdul Razak Maricar.

4G ministers will start discussions with S'poreans next year: HengThe Straits Times 4th Dec 2018
The fourth-generation (4G) ministers will launch their planned series of discussions with Singaporeans after next year's Budget, said Finance Minister Heng Swee Keat. These sessions with different groups of people will build on the Our Singapore Conversation national feedback drive he spearheaded in 2013, said Mr Heng.

PM Lee to visit Argentina and attend G20 SummitChannel NewsAsia 27th Nov 2018
Prime Minister Lee Hsien Loong will make his first working visit to Buenos Aires, Argentina on Wednesday (Nov 28) in conjunction with the 13th G20 Leaders’ Summit, at the invitation of Argentine President Mauricio Macri, said the Prime Minister’s Office in a statement.

Singapore unveils younger, more diverse leadership teamSouth China Morning Post 26th Nov 2018
On Friday, Singapore’s People’s Action Party formally unveiled a slate of leaders who will drive its campaign for the next general election, to be held before April 2021. The 35th Central Executive Committee, elected after a biennial party vote on November 11, is younger and more diverse than its previous incarnation.

Singapore ruling party picks candidate for next PMFinancial Times 23rd Nov 2018
Singapore’s ruling party has picked finance minister Heng Swee Keat as its de facto candidate to be the city state’s next prime minister, ending a fraught process to choose Lee Hsien Loong’s successor. The People’s Action party on Friday appointed Mr Heng as first assistant secretary-general, which sets him on course to be Singapore’s next leader. Mr Lee has pledged to step down in the near future. The finance minister prevailed over two other candidates, education minister Ong Ye Kung and trade and industry minister Chan Chun Sing, who has been named PAP’s second assistant secretary-general.

Singapore looks forward to early ratification of EU-Singapore FTA: Halimah YacobChannel NewsAsia 6th Dec 2018
Singapore looks forward to the early ratification of the EU-Singapore Free Trade Agreement (EUSFTA) by the European Parliament, so that both sides can take advantage of the benefits soon, said President Halimah Yacob on Thursday (Nov 22; Friday, Singapore time) during her state visit to the Netherlands.

Navy Exercise Highlights Malaysia-Singapore Military TiesThe Diplomat 4th Dec 2018
Over the past week, Malaysia and Singapore held the latest iteration of their bilateral maritime exercise. The interaction cast light on the ongoing defense collaboration underway between the two Southeast Asian neighbors despite lingering challenges in the bilateral relationship.

Singapore sprouts innovation centresThe Business Times 6th Dec 2018
Putting on your thinking cap? Some professionals can now do so in dedicated "innovation centres", which are springing up islandwide. At least 25 such facilities have opened since last year, with the help of the Economic Development Board (EDB).

Singapore to spend $10M on new urban technologyZDNet 18th Nov 2018
Singapore government has earmarked S$14 million (US$10.19 million) over three years to fund the development of smart estates and modern technology, such as energy efficient applications.

Singapore, US pledge to enhance ties in energy, cyber securityThe Straits Times 17th Nov 2018
Singapore and the United States are exploring new turf in their relationship as they reach beyond the traditional domains of defense and trade to grasp opportunities in areas such as driverless cars, energy and cyber security.

Financial Services

Payment Services Bill introduced in ParliamentBaker McKenzie 27th Nov 2018
Following a public consultation on the Payment Services Bill (PSB) in November 2017, the PSB was introduced in Parliament on 19 November 2018. The Minister for Education, Ong Ye Kung, on behalf of Mr Tharman Shanmugaratnam, Deputy Prime Minister and Minister-in-charge of the Monetary Authority of Singapore (MAS), has moved the PSB for First Reading in Parliament.

Singapore Proposes New Delisting Rules to Protect Minority InterestsMorgan Lewis 20th Nov 2018
The Singapore Exchange Regulation has proposed new rules for the delisting process in order to better align the various interests of offerors and shareholders, including by lowering the approval threshold for resolutions to pass and ensuring that exit offers are both reasonable and fair.

State Courts plugs electronic loophole that allowed access to case filesThe Business Times 4th Dec 2018
Singapore State Courts has identified and fixed a vulnerability in its electronic case management system used in conducting criminal proceedings, which has allowed a few accused persons to gain unauthorised access to more than 200 e-case files, it said in a media statement on Wednesday.

EDB eyes investments in tech, ICT, healthcareThe Business Times 4th Dec 2018
AS a Singapore-based investor, self-proclaimed to be "Singapore-first" and to have a "unique" position in the venture capital and private equity community, EDBI has identified deep tech, ICT (information and communications technology) and healthcare as industries to watch.

Industry group here working on code for digital token sectorThe Straits Times 30th Nov 2018
An industry association that will oversee digital tokens such as bitcoin and devise efficient ways to regulate the sector officially started here yesterday. The Token Economy Association (TEA) is already working with the Association of Crypto-Currency Enterprises and Start-ups Singapore to launch a code that spells out best practices in a range of areas. These include anti-money laundering, ways to stop terrorism financing and due diligence procedures so customer identities can be authenticated.

Machine learning being used to detect fraudThe New Paper 30th Nov 2018
SkillsFuture Singapore (SSG), an agency that gives out grants and funding for lifelong training, announced yesterday it has implemented the use of machine learning to detect fraud. The move is one of SSG's new enhancements to its fraud risk management system. The media release outlining the enhancements follows several cases of fraud and cheating involving the schemes, including news of a man jailed on Tuesday for his role in a $40 million scam - the biggest fraud case involving a public institution in Singapore history.

IMDA geo-blocks two Malaysian news websites in Singapore for refusing to take down “fake news”The Independent Singapore 29th Nov 2018
The Infocomm Media Development Board (IMDA) has geo-blocked Internet users in Singapore from accessing two alternative Malaysian news websites after both publications refused to take down articles that have been deemed false by the Singapore authorities. IMDA, a statutory board under the Ministry of Communications and Information, told reporters that it ordered internet service providers (ISPs) here to block access to the two websites earlier this month, on 10 Nov, after both websites re-published an article from the States Times Review (STR), that linked PM Lee and his Government to the 1MDB scandal.

Scam cases involving fraudulent subscription of mobile lines up 7 timesThe Straits Times 28th Nov 2018
Scam cases involving fraudulent subscription of mobile lines increased by more than seven times in the first half of 2018, compared with the same period last year. From January to June this year, 77 cases of fraudulent subscription of mobile lines were recorded with the police, with the amount cheated totalling more than $83,000. Such cases involve people who were cheated into signing up for handsets and mobile lines for others. This was usually done for a commission.

Indian business leaders seek AI collaboration with SingaporeThe Economic Times 23rd Nov 2018
Indian business leaders have urged Singapore to collaborate on Artificial Intelligence (AI) in areas like smart cities, 5G, electronic manufacturing, infrastructure and prevailing social issues in health and education.

Infrastructure

Singapore to ban discharge of 'wash water' at top ship refuelling portChannel NewsAsia 30th Nov 2018
The Maritime Port Authority (MPA) said on Friday (Nov 30) that it is banning with effect from Jan 1, 2020, the discharge of "wash water" used in ships to scrub engine exhaust. The ban on so-called open-loop scrubbers in Singapore is to help prepare one of the world's busiest ports for new International Maritime Organisation (IMO) rules that come into force in 2020 and oblige ships to use cleaner fuels.

SilkAir to transfer 17 routes to Scoot ahead of merger with Singapore Airlines Channel News Asia 22nd Nov 2018
SilkAir will transfer its services for 17 destinations to budget airline Scoot ahead of its merger with Singapore Airlines (SIA). In an announcement on Thursday (Nov 22), SIA added that Scoot will also transfer flights to Shenzhen in China and Kochi in India to SilkAir, and flights for two destinations in India to Singapore Airlines.

Singapore, Jiangsu to deepen economic partnership, advance BRI with signing of 13 MOUs Channel News Asia 20th Nov 2018
New industrial parks could soon be built in Southeast Asia after Sembcorp Development and China-Singapore Suzhou Industrial Park Development signed a Memorandum of Understanding (MOU) on Tuesday (Nov 20) to develop such parks in the region. This was one of the 13 MOUs signed during the 12th Singapore-Jiangsu Cooperation Council meeting in Singapore, aimed at deepening economic partnership and advancing the Belt and Road Initiative (BRI).

Singapore, US renew agreement on infrastructure collaboration Channel News Asia 16th Nov 2018
An agreement between Singapore and the US on bilateral cooperation in infrastructure has been renewed, the Ministry of Trade and Industry said on Friday (Nov 16). This include areas in infrastructure, such as energy, providing support in the digital economy, as well as growth in financial technology (FinTech), e-commerce, smart city solutions and deep technology.

Belitung island: 5 reasons it should be your next beach holiday destinationChannel NewsAsia 6th Dec 2018
Looking for something less crowded than Bali, but can’t afford the price tag of a luxury island resort? Look no further than Belitung island, now a mere 1.5-hour flight from Singapore since Garuda Indonesia launched four weekly direct flights from Changi Airport to Belitung’s airport in Tanjung Pandan.